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Bonds slide again as fuel prices hit highs since 2022
Yields moved higher after traders increased bets on a Fed rate hike in 2026, with the short end of the curve steepening sharply around the 9:30am NYSE open.
Bonds logged a third straight down session, as fuel prices rose to the highest levels since 2022 by some measures, adding pressure through the inflation outlook, Mortgage News Daily said.
The outlet noted that while bonds fell alongside energy-related moves, the intraday correlation with oil and gas was not especially strong, suggesting other drivers were also at work.
One market move that stood out was a steep jump in the short end of the yield curve between 9:30am and 10:00am ET, coinciding with the 9:30am NYSE open, a period the publication said has been volatile for bonds all week.
Mortgage News Daily also pointed to rising expectations for a Fed rate hike in 2026 that spilled across the yield curve, and it said the weakness may reflect heightened caution ahead of next week’s Fed announcement, in a period with limited forward guidance.